8/4/14: Last week, Representative Edwards (D-MD) introduced H.R. 5338, the Federal Employee Pension Fairness Act, which will repeal the increased FERS contributions for employees hired in 2012 and 2013. This legislation will return federal employee contributions to the original 0.8%. You will recall that NTEU objected to those pension increases at the time and we have continued to object. As NTEU National President Colleen Kelley wrote to Representative Edwards, “Increasing employee pension contributions with no corresponding increase in benefits is little more than a tax – a selective tax on federal employees.”
Federal employees have contributed $138 billion to deficit reduction. Passage of this legislation will at least remove the increased contribution burden from our newer employees. Representative Edwards proposes to pay for the change by closing corporate loopholes for companies that are incorporated overseas, but managed and controlled in the United States. Joining Representative Edwards as original cosponsors of the legislation are: Representative Connolly (D-VA), Representative Norton (D-DC), Representative Kaptur (D-OH), Representative Lynch (D-MA), Representative Ellison (D-MN), and Representative Rangel (D-NY).